PTC and Orange sign network sharing deal

20 Dec 2010

Polish cellcos Polska Telefonia Cyfrowa (PTC) and PTK Centertel (Orange Poland, a unit of former telecoms monopoly Telekomunikacja Polska), have signed a letter of intent to cooperate on network infrastructure and radio frequency sharing. The companies have filed a proposal with the Polish Competition Office for permission to establish a joint venture which will be responsible for operating both operators’ radio access networks (RANs). The cellcos say that as a result of the cooperation, customers will have access to a better quality network, while at the same time increasing network effectiveness. It will also allow for faster infrastructure development and will deliver to both companies cost savings amounting to ‘hundreds of millions of zloty over the next five years.’

According to the preliminary arrangements, both companies will have a 50% stake in the new joint venture company, which would build, operate and maintain co-used networks within the mutual cooperation. The companies have agreed that the scope of the cooperation initiative will be limited to technical aspects and will allow the partners to: widen the coverage area, which will support the delivery of modern services, including mobile broadband, to a greater number of customers; reduce costs and maximise the efficiency of investments through joint planning of new investments and network upgrades; and continue to own their respective infrastructure while reducing network operating costs